1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - **Rebar**: The main contract price oscillated at a low level with a daily decline of 0.20%, and both volume and open interest contracted. Currently, the supply pressure of rebar is increasing while demand is weak. In this situation of increasing supply and weak demand, the fundamentals continue the seasonal weakness, and steel prices are under pressure. The positive factor is that the inventory inflection point has not appeared yet, and the real - world contradictions are not significant. It is expected that steel prices will continue to oscillate, and attention should be paid to demand changes [4]. - **Hot - rolled coil**: The main contract price rebounded after hitting the bottom, with a daily increase of 0.06%, and both volume and open interest contracted. At present, production restriction disturbances have reappeared, and hot - rolled coil prices are oscillating upwards. However, supply is stabilizing at a high level while demand is weakening, and the fundamental contradictions are accumulating. Steel prices are still prone to pressure, and the upward driving force should be viewed with caution. Attention should be focused on production restriction situations [4]. - **Iron ore**: The main contract price weakened, with a daily decline of 1.32%, and both volume and open interest contracted. Currently, the demand for iron ore shows good resilience, providing strong support for ore prices. However, supply remains at a high level, and the improvement of demand is questionable. The fundamentals have not improved substantially. It is expected that ore prices will continue to oscillate, and attention should be paid to the performance of finished products [4]. 3. Summary by Relevant Catalogs 3.1 Industry Dynamics - **Manufacturing PMI**: In June, the Caixin China Manufacturing PMI was 50.4, up 2.1 percentage points from the previous month and returning to the expansion range. This is the 8th time the index has been above the boom - bust line in the past 9 months, indicating a slight improvement in manufacturing sentiment [6]. - **Heavy - truck sales**: In June 2025, China's heavy - truck market sold about 92,000 vehicles (wholesale basis, including exports and new energy), a month - on - month increase of 4% from May and a year - on - year increase of about 29%. The main reason for the increase is the environmental protection policy, specifically the implementation of the differential subsidy policy for the scrapping and replacement of old operating trucks [7]. - **Steel raw material procurement costs**: In May 2025, except for the slight month - on - month increase in the procurement costs of metallurgical coke, domestic pellets, and imported pellets, the procurement costs of other varieties decreased month - on - month, but the decline narrowed. Among them, the procurement costs of pulverized coal injection, steam coal, and alloys decreased relatively significantly [8]. 3.2 Spot Market - **Black metal spot prices**: The spot prices of rebar, hot - rolled coil, and other products are provided, along with their price changes. For example, the national average price of rebar (HRB400E, 20mm) was 3,205 yuan, down 6 yuan; the national average price of hot - rolled coil (4.75mm) was 3,224 yuan, down 7 yuan [9]. 3.3 Futures Market - **Futures prices of main contracts**: The closing prices, price changes, trading volumes, and open interest of rebar, hot - rolled coil, and iron ore futures are presented. For instance, the closing price of rebar futures was 3,003 yuan, down 0.20%; the closing price of hot - rolled coil futures was 3,136 yuan, up 0.06%; the closing price of iron ore futures was 708.5 yuan, down 1.32% [11]. 3.4 Relevant Charts - **Steel inventory**: Charts show the weekly changes and total inventory (steel mills + social inventory) of rebar and hot - rolled coil, as well as the inventory of iron ore in 45 ports, 247 steel mills, and domestic mines [13][18][25]. - **Steel mill production**: Charts display the blast furnace operating rate, capacity utilization rate, and profitability of 247 sample steel mills, as well as the operating rate of 87 independent electric furnaces and the profit - loss situation of 75 building material independent electric arc furnace steel mills [28][31][36]. 3.5 Market Outlook - **Rebar**: The supply - demand pattern has not changed significantly. The production of construction steel mills has increased, and the weekly output of rebar has increased by 5.66 tons, reaching a relatively high level this year. Demand is weakly stable, and the weekly apparent demand has slightly increased by 0.72 tons. The weak demand restricts steel prices. It is expected that steel prices will continue to oscillate, and attention should be paid to demand changes [37]. - **Hot - rolled coil**: There are changes in both supply and demand. The production of plate steel mills is stable, and the weekly output of hot - rolled coil has increased by 1.79 tons, remaining at a high level this year. Demand resilience is weakening, and the weekly apparent demand has decreased by 4.44 tons. Although the downstream cold - rolled production is at a high level, the end of the Sino - US tariff "exemption period" may lead to external risks. It is expected that steel prices will be under pressure, and attention should be paid to production restriction situations [37]. - **Iron ore**: The supply - demand pattern has changed. Steel mills are actively producing during the off - season, and the terminal consumption of iron ore continues to rise. However, the arrival at ports has unexpectedly declined, and miners' shipments have also decreased. The supply pressure remains relatively high. It is expected that ore prices will continue to oscillate, and attention should be paid to the performance of finished products [38].

Industry Overview - Silicon iron (FeSi) is produced using raw materials such as coke, steel scrap, and quartz in electric furnaces, primarily used as a deoxidizer in steelmaking and as an alloying agent in various steel types [1][6] - The demand for silicon iron has been increasing due to the recovery of the domestic and international economy, with production expected to reach 5.438 million tons in 2024, a nearly 1% increase from the previous year [6][10] Production Capacity and Distribution - As of the end of 2024, China's silicon iron production capacity is projected to exceed 8 million tons per year, indicating potential overcapacity and intensified market competition [6][8] - The production is highly concentrated in regions rich in energy and resources, such as Inner Mongolia, Ningxia, and Shaanxi, with Inner Mongolia's share rising from 27.2% in 2022 to 32% in 2024 due to its green energy initiatives [8][10] Market Pricing - The price of silicon iron in China showed a downward trend in 2024, decreasing from 6,661.43 CNY/ton at the beginning of the year to 6,024.29 CNY/ton by the end, a decline of approximately 9.56% [10] - Factors influencing price fluctuations include demand weakness, production adjustments, and changes in raw material costs [10] Import and Export Dynamics - China remains a net exporter of silicon iron, with imports in 2024 reaching 82,900 tons, a 40.51% increase year-on-year, driven by demand for high-end specialty silicon iron products [12] - Exports slightly increased to 428,800 tons in 2024, marking a 5.43% growth, while net export volume and trade surplus showed cyclical fluctuations [12] Competitive Landscape - The silicon iron industry in China is characterized by an oligopolistic structure with regional concentration, where companies leverage local resource advantages to enhance competitiveness [14][18] - Companies like Ordos, with an annual production capacity of 1.6 million tons, dominate the market due to their integrated coal-electricity-silicon iron production model [14][18] Development Trends - The industry is shifting towards high-end and specialized products, with increasing demand for high-purity and specialty silicon iron alloys driven by advancements in downstream applications [20] - Environmental policies are pushing the industry towards greener practices, with companies adopting technologies to reduce energy consumption and emissions [21] - The global market is becoming more competitive, with rising trade barriers and the emergence of new production regions, prompting companies to diversify their export markets and localize production [22]

Market Overview - The overall market experienced a slight decline with the Shanghai Composite Index down 0.02%, the Shenzhen Component down 0.26%, and the ChiNext Index down 0.31%, indicating cautious market sentiment with over 3,400 stocks in the red [3][4] Key Investment Themes Environmental Protection and Energy - The solid waste treatment and combustible ice sectors saw strong gains, with stocks like Yuhua Tian and Boschke hitting the daily limit of 20%. This surge is driven by enhanced environmental policies and new regulations on industrial solid waste management [4] - Companies in this sector are expected to have a policy moat and performance outlook, suggesting that investors should consider gradual accumulation during pullbacks, especially in leading firms with technological barriers [4] Consumer Recovery - The food and beverage sector showed activity, with stocks like Huanlejia reaching a 20% limit up, driven by the upcoming summer consumption peak and anticipated price increases in some consumer goods [4] - However, the pharmaceutical sector faced collective adjustments, with companies like Ruizhi Pharmaceutical and Xue Rong Biological leading the decline due to rising expectations for centralized procurement and some companies' performance falling short of expectations [4] Technology Sector - The controlled nuclear fusion concept gained traction, with stocks like Libote and Rongfa Nuclear Power hitting the daily limit. This area is part of the new energy sector, with strong expectations for technological breakthroughs and a willingness from investors to pay premiums [5] - Conversely, the cross-border e-commerce and chemical sectors experienced pullbacks, particularly in the epoxy propane segment, primarily due to fluctuations in raw material prices [5] Market Sentiment and Strategy - Investors are advised to focus on structural opportunities concentrated in policy-driven and performance-reliable sectors, rather than being swayed by daily market fluctuations [6] - There was a slight inflow of northbound capital, but significant divergence among domestic investors suggests the need to monitor future volume expansion [6] - Maintaining a controlled position is recommended while waiting for market shifts, with strong support around the 3,300-point level for the Shanghai Composite Index [7]

Investment Rating - The report maintains an "Increase" rating for the petrochemical and chemical transportation sectors [5] Core Views - The third round of the fourth batch of central ecological environment protection inspections has been fully launched, which may impact the chemical industry [1] - The pesticide industry is undergoing capacity optimization due to stricter environmental regulations, with a potential price increase for chlorantraniliprole following an explosion at a major production facility [2] - The organic pigment industry is consolidating, with a positive outlook for high-performance organic pigments as domestic alternatives gain traction [3] - Investment recommendations include focusing on undervalued, high-dividend companies in the "three barrels of oil" and oil service sectors, as well as materials companies benefiting from domestic substitution trends [4] Summary by Sections 1. Chemical Product Market Review - The report highlights the current pricing trends for various petrochemical products, including Brent crude oil at $65 per barrel and WTI crude oil at $62 per barrel, with a notable decline in prices compared to previous months [9] - The report also provides detailed pricing for basic chemicals, fertilizers, and pesticides, indicating fluctuations in market prices [16][17] 2. Pesticide Industry Insights - The pesticide industry is seeing a reduction in capacity as non-compliant small enterprises exit the market, leading to a potential recovery in raw material prices [2] - The explosion at Youdao Chemical is expected to impact the supply of chlorantraniliprole, which may lead to price increases [2] 3. Organic Pigment Industry Analysis - The organic pigment sector is experiencing ongoing consolidation, with a shift towards high-performance organic pigments due to stricter environmental regulations and market saturation of traditional pigments [3] - The report suggests that companies with advanced production technologies will benefit from this trend [3] 4. Investment Recommendations - The report recommends focusing on companies in the oil and gas sector, materials benefiting from domestic substitution, and those in the fertilizer and pesticide sectors due to favorable monetary and fiscal policies [4]

Market Demand - The demand for N121 carbon black is increasing due to its essential role as an industrial raw material, particularly in industries such as rubber, plastics, and coatings [2] - The rise of new industries, including electric vehicles and renewable energy, is significantly driving the demand for N121 carbon black, contributing to price increases [2] Supply Factors - The supply of N121 carbon black is concentrated among a few large companies, leading to limited availability and a tight market [2] - The production capacity and technological capabilities of established chemical companies play a crucial role in determining the supply of high-quality N121 carbon black [2] - The presence of technological barriers makes it difficult for new suppliers to enter the market, further constraining supply and pushing prices higher [2] External Influences - International trade policies and environmental regulations can impact the price of N121 carbon black by affecting import and export dynamics, thus influencing supply and demand relationships [3] - Stricter environmental regulations increase production costs for carbon black manufacturers, indirectly raising the market price of N121 carbon black [3] Market Competition - The competitive landscape of the N121 carbon black market, including the number of suppliers and market share distribution, directly affects pricing [3] - Market monopolies can lead to higher prices, while intense competition may pressure suppliers to lower prices to gain market share [3]

Group 1 - The article highlights the increasing demand for metal furniture in Europe due to climate change and other factors such as tariffs and wars [1][2] - China's metal furniture export to the US has shrunk significantly, with 2021 exports valued at approximately $12.96 million, making the US the largest market prior to the trade war [2] - The European market is identified as the second-largest overseas market for Chinese metal furniture, with a projected compound annual growth rate (CAGR) of 7.2% for outdoor metal furniture [3][4] Group 2 - The demand for metal furniture in Europe is driven by environmental considerations and government policies, with Germany, the Netherlands, and France being the top three countries for demand in 2024 [4][6] - The article suggests that to enhance exports to Europe, companies should focus on product planning for e-commerce channels, localizing branding, targeting specific events for sales, and maintaining a stable mid-range market position [7][8] - The article emphasizes that despite the challenges posed by North American trade issues, the growth opportunities and diversity in the European market should be a focal point for industry players [8]

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company's performance in Q1 2025 met expectations, with a significant year-on-year increase in net profit of 180.99% [1][2] - The shipbuilding industry is experiencing an upward cycle due to factors such as the ship replacement cycle, environmental policies, and tight production capacity [4][5] - The company has a strong order backlog, with a total of 2,169.62 billion yuan in hand for civil ship orders as of 2024 [2] Financial Performance - In 2024, the company achieved an operating revenue of 78,584 million yuan, a year-on-year increase of 5.01%, and a net profit attributable to shareholders of 3,614 million yuan, up 22.21% [1] - For Q1 2025, the company reported an operating revenue of 15,858 million yuan, a 3.85% increase year-on-year, and a net profit of 1,127 million yuan, reflecting a 180.99% increase [2] - The gross profit margin for 2024 was approximately 10.20%, with a net profit margin of 4.91% [3] Business Segmentation - The shipbuilding and marine engineering segment generated revenue of 75,374 million yuan in 2024, up 7.03% year-on-year [1] - The electromechanical equipment segment reported revenue of 1,956 million yuan, a 1.45% increase [1] - The company delivered 93 civil ships in 2024, achieving 721.34 million deadweight tons, exceeding the annual plan by 112.74% [2] Order and Delivery Insights - The company secured new orders worth 1,039 million yuan for civil ships in 2024, along with 20.73 million yuan for repair services [1] - As of Q1 2025, the company’s gross profit margin improved to 12.84%, a year-on-year increase of 5.62 percentage points [3] - The total hand-held civil ship orders amounted to 2,169.62 billion yuan, indicating strong future revenue potential [2] Industry Trends - The shipbuilding industry is witnessing a slowdown in new orders, with a 56% year-on-year decline in new orders from January to April 2025 [4][17] - Despite the slowdown, ship prices are expected to continue rising due to tight supply and inflationary pressures [4][5] - The integration of shipbuilding assets within the group is progressing smoothly, which is expected to enhance operational efficiency and competitive positioning [5]

Financial Data and Key Metrics Changes - Revenues for the first quarter of 2025 rose 29% to $6,400,000 from $5,000,000 in the prior year period, primarily driven by the robust performance of the FUEL CHEM business segment [17][6] - Consolidated gross margin improved to 46% from 41% in the prior year, reflecting a higher proportion of FUEL CHEM segment revenue [18] - The operating loss narrowed to $952,000 from $1,700,000 in the previous year, indicating improved financial performance [22] - The net loss for the quarter was $739,000 or $0.02 per share, compared to net income of $281,000 or $0.01 per share in the same period last year [22] Business Line Data and Key Metrics Changes - FUEL CHEM segment revenue increased by 92% to $5,100,000 from $2,600,000 in the prior year, comprising nearly 80% of total revenues for the quarter [17][8] - APC segment revenue declined to $1,300,000 from $2,300,000 in the previous year, primarily due to the timing of project execution [17][9] - APC backlog improved significantly, reaching $10,300,000 as of March 31, 2025, up from $6,200,000 at the end of 2024 [19] Market Data and Key Metrics Changes - The company is encouraged by the global landscape of business development activities, driven by manufacturing expansion and growing demand for power generation [6][7] - The demand for emissions control solutions is increasing due to the need for compliance with environmental regulations [7][12] Company Strategy and Development Direction - The company aims to maintain revenue guidance for 2025 at approximately $30,000,000, with expectations that both business segments will exceed their performance in 2024 [14] - The focus remains on pursuing additional FUEL CHEM opportunities domestically and internationally, with plans for new demonstrations of technology [8][9] - The company is actively engaging in discussions regarding the expansion of its chemical technology in Mexico, aligning with the new government's environmental policies [9][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current business environment, noting that uncertainties in the market have not significantly deterred business activity [31] - The company is not expecting any specific tailwinds from new regulations but is confident in capturing opportunities driven by general business expansion [30][31] - The management highlighted the potential for growth in the data center market, driven by increasing energy demands [11][35] Other Important Information - The company has no long-term debt and maintains a strong financial position with cash and investments totaling approximately $31,200,000 [22][24] - Research and development expenses increased due to ongoing investments in water and wastewater treatment technologies [20][21] Q&A Session Summary Question: Current political environment and its impact - Management indicated that the new administration is not deterring business opportunities, and general market drivers are favorable for growth [30][31] Question: Data center partnerships - While specific names could not be disclosed, management confirmed collaboration with OEM suppliers and large tech companies in the data center market [32][33] Question: Mexico opportunity and funding - The Mexican government needs to allocate funds for pollution remediation systems to facilitate order placements [39] Question: Environmental regulations and data center opportunities - Management noted that opportunities are not solely driven by new regulations but are influenced by existing EPA regulations [46][47] Question: DGI sales representatives - The company is engaging sales representatives to enhance market access for DGI technology, with positive feedback from recent shows [50][51] Question: Stock buyback considerations - Management discussed the potential for stock buybacks but emphasized confidence in organic growth as a better use of cash at this time [68]

Group 1 - The battle between the new energy industry and traditional industries is intensifying, with electric vehicles rapidly capturing market share due to their environmental benefits, efficiency, and lower travel costs [1] - Lithium batteries, essential for electric vehicles, have applications beyond the automotive sector, initially being used in 3C digital products and expanding due to environmental policies [1] - The company Baoli Lion has launched a "one-stop lithium battery assembly franchise" project to assist aspiring entrepreneurs in entering the lithium battery market [1] Group 2 - Baoli Lion has extensive experience in the lithium battery assembly and recycling industry, having started research on this technology over 15 years ago and developing environmental equipment and a strong engineering team [1] - The franchise project requires minimal space and can be operated by 1-2 people, making it accessible for entrepreneurs, often referred to as a "home-based dream project" [2] - The demand for lithium batteries is significant across various sectors, including communications, medical devices, military, and aerospace, driven by their lightweight, high energy storage, and long lifespan [2]

Core Viewpoint - The global filter press market is projected to grow from $2.103 billion in 2021 to $2.789 billion by 2025, with a CAGR of 2.67% during this period, and is expected to reach $3.81 billion by 2031, reflecting a CAGR of 5.34% from 2025 to 2031 [3][5]. Market Overview - The filter press is primarily used for solid-liquid separation and finds applications in various industries such as wastewater treatment, mining, chemicals, pharmaceuticals, food, and metallurgy [5][9]. - In 2024, the Chinese filter press market revenue is expected to reach $1.177 billion, with a projected CAGR of 6.53% from 2025 to 2031 [7]. Regional Insights - The Asia-Pacific region is the largest consumer market for filter presses, accounting for approximately 60% of global market revenue, driven by rapid economic growth and stringent environmental policies in countries like China and India [9]. - North America and Europe are also significant markets, but the demand in the Asia-Pacific region is expected to continue increasing due to industrialization and urbanization [9]. Market Segmentation - The main types of filter presses include chamber filter presses, diaphragm filter presses, and plate-frame filter presses, with diaphragm filter presses holding a significant market share of about 66% in 2024 [9]. - Wastewater treatment is the most important application market for filter presses, accounting for approximately 48% of the global market [9]. Growth Drivers - Stringent environmental regulations globally are driving the growth of the wastewater treatment industry, thereby increasing the demand for filter presses [10]. - Advances in automation technology have led to modern filter presses that offer higher efficiency, lower energy consumption, and longer service life, expanding market opportunities [10]. - Diverse demand from various industries such as mining, chemicals, and food and beverage is fostering technological innovation and market growth [10]. Challenges - High initial investment costs for filter presses can be a barrier for small and medium-sized enterprises, limiting their ability to procure advanced equipment [11]. - Increasing competition in the filter press market poses challenges for smaller companies in terms of technological innovation and quality assurance [11]. - The complexity of maintenance and operation, especially in high-load and high-pollution environments, can lead to higher costs and technical requirements [11]. Barriers to Entry - The filter press industry has high technical requirements, necessitating strong R&D capabilities and technical reserves to meet diverse industry needs [12]. - Capital barriers exist due to high costs associated with production equipment, R&D, and raw materials, requiring substantial financial backing for new entrants [12]. - Market barriers arise from the diverse applications of filter presses across various industries, necessitating in-depth market understanding for new entrants [12].